The Rachel Cruze Show - 9 Simple Habits to Live More Minimally (and Have More Peace)

Episode Date: October 23, 2023

When it comes to saving money, it’s all about simplicity. Which is why I’m sharing nine practical money habits for you to try if your budget is in need of a reset. Also, let’s unpack the one question we’ve all asked: Will making more money solve my problems? What You Get in This Episode: ·     5 Frugal Habits to Cut Your Expenses in Half ·     4 Things Minimalists Do to Build Wealth ·     Will Making More Money Solve Your Problems?   Helpful Resources: ·      Grab Telestrations at your local Walmart. ·      Try BetterHelp today! ·      Check out Christian Healthcare Ministries. ·      Start budgeting for free with EveryDollar. ·      Get on the waitlist for Rachel’s new kids book, I'm Glad for What I Have   Sponsors pay the producer of this show, The Lampo Group, LLC, advertising fees for mentioning their services or products during programming. Advertising fees are not based upon or otherwise tied to any product sale or business transacted between any consumer or sponsor. The following sponsors have paid for the programming you are viewing: Christian Healthcare Ministries, Op Games and Better Help.   Learn more about your ad choices. https://www.megaphone.fm/adchoices Ramsey Solutions Privacy Policy Learn more about your ad choices. Visit megaphone.fm/adchoices

I talk a lot about contentment here on the show, but I also talk about taking control of your money to create a life that you want. So I saw an article recently that said, if money doesn't make you happy, you aren't spending it right. Hey guys, welcome to this episode of the Rachel Cruz Show podcast. I'm so glad that you're here.

First and foremost, so sorry, my voice is just a little crazy. I lost it. It's coming back. It's coming back. But, yeah, this is how I'm going to sound on this intro and outro of this podcast. But if you guys love this podcast, make sure to leave a review. It helps so much when it comes to the algorithm and getting this podcast in front of other people.

And another thing I'm so excited about to tell you, I am launching my very own first kids book. It's called I'm Glad for What I Have. And if you have young kids and you want to teach them about contentment and that it's okay to have nice stuff, just don't let your nice stuff have you. It is such a fabulous book. I'm really excited about it. It was something of my own kids inspired me to write. because I want to teach my kids, hey, what is it the thing that's really going to fulfill you in life?

And hint, it's not your stuff. So it's a precious little kid's book. If you want to read it and you want to buy it for your kids, make sure to check it out at Rachelcruise.com. And it's called I'm glad for what I have and pre-sales start later this week. And I'm really, really excited about it. Okay, so in this episode of the podcast, we'll get to why you came here in the first place. We're going to talk about habits that can help you build wealth. I'll go over my thoughts on whether making more money will truly solve your problems.

Then we'll talk about four things minimalists do to build wealth. But first, let's talk about five frugal habits to cut your expenses in half. Take a listen. Okay, so a lot of people think in order to have financial peace, they need a big, life-changing money miracle, like a massive salary increase, or a grand gesture of, like, all debt forgiveness from the government. Spoiler alert, that's not coming. But one thing that I have seen, though, over and over again with people that decide to take control of their money is that their big life change almost never happens

because they wake up one day with a random financial miracle. People usually transform their lives with small changes in their day-to-day habits. And those simple changes add up to huge progress over time. So today I want to talk through the most effective habit changes I've learned so that you can give them a try yourself. All right, my first frugal habit is strategic shopping. So whether you're going to the grocery store or a pharmacy, where you choose to shop can make a huge monthly difference in your budgets. So listen, I recommend shopping somewhere like Aldi or Walmart when it comes to your groceries because you can save so much money. All my Aldi fans out there are like yelling and cheering. Because we all know it's not very aesthetically pleasing, right? Like,

or Whole Foods, but the prices are significantly lower. And another thing to keep in mind about grocery shopping is to buy generic when you can. I recently did an episode when I compared Publix brands, snacks that my kids love to the name brand, and they hardly knew the difference. And then I added up how much money I would save, and it's insane, you guys. It's like hundreds of dollars throughout the year. So if you want to check out that video, I'll make sure to link it below so you can check it out. All right, my second frugal habit is another food-related hack, and that's don't go out to eat.

And this one hurts a little bit, I know. But listen, it doesn't have to be forever. But if you want immediate margin in your budget, don't go out to eat for one month. So yeah, back in January, I saw a lot of you guys participate in the no-spend challenge. And I did kind of a version of this with my kids this summer. And it's amazing the amount of money that you can save. I mean, we're talking hundreds of dollars in just one month, all because you said, hey, we're not going out to eat.

We are eating at home. And I know eating out is so convenient. It's so nice and simple. And you don't have to do dishes and all this stuff. I know. So it's kind of hard to break that cycle. But once you do it and once you get in the rhythm of eating at home instead of restaurants and takeout, I'm telling you, it becomes more simple and it becomes nice.

You know, we try to eat in as much as we can in my family. Like we do a meal plan Wednesday at the beginning of the week. We look at every night throughout the week to see, what are we doing? And what can be crock pot meal? I mean, I did some ground beef on Sunday that we're going to use for tacos. and then I'm going to put in some mariner sauce for spaghetti later this week. So anything that you can do just to be disciplined to say, hey, let's try this. Let's try not going out to eat.

I promise you will see progress in your budget. So I'm going to link a video as well where my friend proved that she could feed her family for $41 in one week. It's true, you guys. It is way more expensive to eat out than to eat at home. So it's a great habit to form. All right, my third frugal habit is another version of a no-sum. spend challenge, and that is no extras for a month. So this can be a lot of different things

depending on what your shopping tendencies are. But what if you said no to target runs or no to just browsing T.J. Max or no to Lulu Lemon Dupes on Amazon? Like what if you said no? Whatever your method of comfort shopping is, any extras every now and then, if you just said no, I promise you would see some extra cash. And I would even challenge you to reconsider all the essential is too because things like Amazon, it's a double-edged sword, right? I mean, it's so helpful and convenient, but yet you kind of get into this rhythm where you think, oh yeah, I just need this and need that, need that, and then you're going to be tempted to spend more.

It would be very convenient, but yet a lot of these things that we think are essential in life, just because we can get to them quickly can make it feel like we need them when we really don't. So I would recommend shopping for just what you need, truly what you need, and try to negate some of the wants and see how much money you'll save. All right, my fourth frugal habit is to eliminate social media temptations. So I went through a period of time where I followed like eight influencers that I loved all their stuff.

And y'all, I was tempted to buy it like all the time, all the time. So I went through and actually unfollowed a few of them, muted a few of them for a season because I was like, I just can't know that these clothes exist because if I know they exist, I'm going to want to buy them. So maybe for you, it's going through and saying, hey, you know, maybe I should limit either my access on social media or the people I follow. So whether it's, you know, style, clothing, whether it's interior design, like whatever those things that make you want to spend money and buy stuff, right, maybe you just kind of simmer that down for a little bit and see where you

can save. And again, I also have to remember that it's their job to get me to swipe up and spend money. That's how they make money. And it's not a bad thing, but just be aware of it. So it's crazy. I'm like, even a $24 sweatshirt from Walmart, you know, you're like, my gosh, it's so good. I have to have it. But do we really? And would I even know that thing existed if I didn't see somebody wearing it on social media? Just know that social media, it is there to show you a life that you wouldn't have known otherwise. So be aware of that. And if you can be self-aware enough to know, you can get through it. But if you want to save some money, I would recommend stepping away for just a little bit and see how much money that you save.

All right. My fifth frugal habits is another process of elimination, and that is to cut down your subscriptions. So I know this sounds really simple, but I came across a stat the other day that really puts this in perspective. So the average consumer has 12 subscriptions per month. And millennials, us, fellow millennials, we have 17. I just, I can't even, I can't even. I'm like, that's so crazy. So when asked to estimate how much they pay in monthly subscriptions, the average consumer pays $133 more than they thought they did. So they had a number in their minds and they actually pay $133 more than that, which just proves that, like, it's so easy to spend and not realize it. And that's why you want to track every single expense that goes out of your checking account.

That's why I love the budgeting app every dollar because it connects to your bank account and you see every transaction come in. So these things don't just get lost into this black hole of the internet. No, you're actually seeing the money that is being taken out of your account and you know where it's going. So I talked to some friends and coworkers and callers on the you show all the time, who have no idea how much money they're losing to random subscriptions every single month until they comb through their purchases. And if you've never done a subscription check before, do it. Obviously, you'll want to eliminate any subscriptions that you don't use and try to intentionally eliminate a few that maybe you know you could go without for a while

to save some money. So think about it. Do you really need four different streaming services? Or could you take a break from Hulu, if you're paying for Netflix? So just kind of go back and forth Again, challenge yourself on this. And again, a lot of these are non-essentials, but you can keep some, but the ones that you're not using go ahead and eliminate. And do it as quickly as possible because instantly you will have some wiggle room in your budget.

So you guys, I would encourage you to try at least one of these frugal habits this week. Just do it. And you'll be surprised how much margin you actually can create in your budget with just these simple changes. And if you're already doing one or several of these things, then leave a comment below and tell me how it's going. Or maybe you know some other minds.

habits that you swear by. So put those in the comments too, because we're always curious. Now we're here to help each other, save some money. Because getting margin in your budget, it's a beautiful thing. So over the years, I've been lucky enough to interview several minimalists on this show. Okay, so a minimalist is someone who intentionally lives with less clutter and more simplicity. And you guys know I'm all about creating margin. So that's either with your budget or with your life.

and when we free up space in our monthly budget, we are able to accomplish long-term money goals that actually matter to us. So today I want to share a few of my favorite habits that I've learned from minimalists. And specifically, I'm sharing four things that minimalists do that could actually help you create wealth. And I'm curious how many of these things

that you are already doing. So I'll be curious which ones you might be interested in trying. So stay tuned and let me know in the comments where you land. All right, the first thing, minimalists do that directly is related to building wealth, is saying no to clutter. So decluttering your life sounds simple, but actually committing to this habit can be a game changer for your money. When there's simplicity in your physical space, you feel a deep sense of peace that you never want to let go of. It is just calming when there is not clutter. There's a popular

quote that I always hear on home organization shows, you either get the stuff or you get the space. And when you're trying to declutter and get organized, a level of sacrifice is required. So in order to gain one thing, you have to give up something else. But in the end, you have peace of minds and calmness. When you live with less excess, it's priceless, you guys. And suddenly, it's amazing. You're not tempted just to keep up with the Joneses all the time. Instead, you're thinking about your long-term goals rather than coveting something else someone

else has. So less clutter can equal less comparison, which I think is awesome. Right. The second thing minimalist do to build wealth is also kind of a side effect of what we just talked about, but that is that they use less brainpower. Because when you have less clutter, you use less brainpower on decisions that don't really matter. So for example, if you have four spatulas to choose from when you're cooking dinner every night, you end up scaring into the kitchen drawer being like, which one should I use versus just having one that you use? But when you have, again, one option, you don't have to have all that energy to think through which one am I going to do. Because at the end of the day, a spatula is just a spatula. And that goes for shoes,

toys, Tupperware, all of it. Again, once you free up that extra brain space, you're able to actually put your energy and your thoughts to things that actually matter, like investing in retirement or kids college or something like that. So for me too, this has been huge for my closet. Now I can do better. I'll admit that. But when you go in and you have like all these options, you sit there and think, oh my gosh, what do I want to wear? Versus if you just have the things that you know you love, stick to those things. You don't have to think about it all the time.

So again, it frees up your brain in so many areas with decisions that don't matter to actually focus on things that do. The third thing minimalist do to build wealth is to make better and wiser purchases. So since they're not concerned with excess clutter or comparison culture, when they do buy certain things, they're very intentional about it. It's the same goal you have with budgeting. When you plan for your money, you're in control, so you have freedom to make those purchases. And we've all been guilty of that Target impulse shopping spree.

But it's kind of empowering to walk in to a store, confidently pass the clothing section, and go get exactly what you need. Again, when there's intention behind your spending, there's not buyer's remorse or thinking through like, oh my gosh, was it okay that I spent this money? You are free from that. And lastly, the fourth thing minimalist do that helps them build wealth is practice contentment. The discipline of minimalism reminds you that you already have enough. And when you're committed to being content and steering clear of comparison culture,

your mind starts focusing on different things and better things, like giving to others, or maybe setting up a specific sinking fund for your future money goals. And from there, it's just a positive cycle. So once you get strategic about living more minimally, contentment follows. And eventually you start to live with less. So while we're talking about contentment,

I cannot wait to tell you about my new kids' book. You guys, I've been waiting to write a kid's book for so many years. And finally, the time came. I did it, and I'm so excited about it. It comes out November 7th. And it's called I'm Glad for What I Have. And this is all about contentment. So there's all these little animals in the book who are adorable.

Oh my gosh. And they want and want and want and want and want and want, just like you and I sometimes. And they kind of get their wish, but they quickly realize. all this stuff to not give them the joy that they were expecting. And in the end, they find something that really will give them joy. And so I don't want to give away the ending, but it's just so cute. And it rhymes. It's pretty short for you parents out there.

And what's great, too, I'll give you a little sneak peek on the illustrations, is the pages are really thick. So they're not going to tear because my kids sometimes would tear those little pages of kids' books, and I'd be like, stop. So it's very durable. It's short. It rhymes. it has a great message for your kids and for you as the parent too.

So if you're a grandparent, an aunt and uncle a friend, this could be a great baby shower gift, but it is a really great book. I'm excited for you guys to read it. And again, it's called I'm glad for what I have. So I saw an article recently that said, if money doesn't make you happy, you aren't spending it right. That's so interesting.

I talk a lot about contentment here on the show, but I also talk about taking control of your money to create a life that you love and create a life that you want. And it definitely can be tricky to find the balance between those two goals. So today I want to unpack what this article is saying and share what you need to know about using your money to make you happy. So the first way this article says that money can buy happiness is when it's used for experiences instead of things.

Research shows that humans adapt to new material things more quickly, aka we get used to our new fancy sofa and kind of start taking it for granted. We do that faster, take things for granted, than we would a sewing class that we invested in. And research also shows that we remember experiences more than remember things, and we are more likely to be filled up socially, which is part of most experiences like travel or a group workout class, rather the material possessions that we use in isolation. Okay, so I love this, because I do talk about in my book, Know Yourself, Know Your Money, about we tend to either want to spend on experiences or things.

And I want to say that neither one's right or wrong. I think some people, they just find more value and buying an actual thing they can use versus some people value experiences. But I'm more on the experience side. So I kind of love that research backs me up in what I like. But I think there is a truth to creating memories and creating, you know, a life in general that you live with people that you love. And that joy takes you further than just a thing.

But I also can appreciate when you save up for an item that enhances your life and makes it better to a degree, I think I like a pizza oven. A pizza oven would be so fine because I could create an experience, but it's a thing that you buy. So it's just good to process and think through and not get caught up in this idea that stuff's going to make me happy because it doesn't. And research shows actually experiences kind of make you a little bit more fulfilled. So I like that.

All right, the second way that this article suggests money can buy happiness is related to giving. So it says spending money on others by giving to charity or other causes is known to make us happier than spending money on bills or things for ourselves. However, most of us assume that buying things we want will fill us up. So instead, that rush goes away pretty quickly compared to the joy that people experience when they choose to make generosity a long-term habit. Just give an applause for this article because yes, yes, and amen. We talk about giving so much on the show and that it needs to be at the top of your budget.

This is a practice. This is a habit that you want to be a part of your financial life because you do. experience joy on a completely different level, a different scale, a different way than when you buy actual things and helping people, you guys, there's something about that. It just, it gives you a level of fulfillment that stuff never can. And we're not against stuff around here. But man, if you just fill your life with a bunch of crap, and that's all, the only reason you want to win with money is that, you live kind of a shallow life. Let's be honest. But when you use it to enhance other people's lives and help people that really need it, it's a joy that you just,

You can't express any other way than to experience it. So I love that. All right, the third way that you can buy happiness is when we spend it on small purchases more frequently than large purchases that we have saved up for. Research has shown that frequent bursts of joy are more effective at bringing us happiness than less frequent big ticket investments.

So it suggests that planning two short holidays during the year rather than one long vacation. I love to say holiday. Where are you going on holiday? So like high-spirited. And I do love that. I'm like, I think that there's something so fun about doing more things, even if it's less expensive.

And again, I talk about this and know yourself, know your money on quality over quantity. And I lean quantity. And I say this in my book. I just like, I'm like, I would rather have, you know, 20 earrings that are cheap from Amazon than like one nice pair. And again, I don't want clutter. And we talk about minimalism a lot on this show.

too. So, like, I don't want a bunch of crap around. I get it. There's a balance here, balance people. But that little burst of like, oh, that's kind of fun. I get that. I totally get that. So maybe this research is all for me. I'm not sure. But I also know buying a bunch of cheap crap that's going to continue to break versus investing in something. Nice, that will last longer is wise to. It's all about balance here. I'm not going to pick either side. But it is funny that this research kind of leans me again. Maybe I picked this article just to give myself a pat on the bat and justify all my spending habits. All right, the fourth way money can buy happiness

is by only investing in insurance that's worthwhile. So it says studies show that we enjoy something more if we don't have the opportunity to exchange it. So consider skipping the expensive warranties. So basically, they're advising you not to waste small amounts of money on every little thing that comes with an insurance option. And I agree with this too. I think warranties are, ugh, just because they get your money.

And it's like, if the item's going to break, why am I buying it in the first place, right? But they will mark up those warranties and they freak you out and think, oh, my gosh, it's going break, it's going to break, it's going to break. And then you end up realizing, oh, my gosh, I just spent money here. And it's not going to create happiness because the thing usually, it's built well and it's going to last longer. So I totally agree with that. All right, the fifth way, money can buy happiness is to buy now and consume later. So this is the reverse of buy now, pay later, right? It's the opposite. And so they're saying that seeking out events or treats in the future allows you to look forward to positive experiences and enjoy them fully in the moment since the financial part is already taken care of. Oh my gosh, this is like girl math where you feel like you buy something and then you go and you have fun because it just feels like it's free because you bought it so long ago. And I agree with this too, you guys. So whether it's a concert that you're looking forward to or a vacation, there is something about going on and just buy.

paying the bills, paying the room, whatever it is, and then it happens 60 days later. And you can fully be in it because you're not thinking about what you spend on it because you already spent the money. I get it. And I would agree. I think that that's so true. That's so fun. I love that. All right. The sixth way, this article says that money can buy happiness is choosing to think about certain details you typically forget to think about. So for example, sometimes when we finally decide to make a large purchase that we've decided will fulfill us in some way, we forget to think about the parts of that purchase that aren't so fun. To like buying a house and forgetting about closing costs and furniture or paint supplies

or buying a car and not factoring in gas and insurance and all that. And if you're intentionally, remember to consider all the variables, you might preserve some joy and save some angst down the road. Okay, I think this is fascinating too because you can get so focused on one thing and you do forget all the other costs involved and then it kind of brings down that purchase. So the joy in it. So be thinking about the whole picture, you guys, the whole picture of what you're about to get in.

If you're going on vacation, don't forget to budget food because you're going to get in and be like, oh gosh, we'd pay for food. If you're buying a car, and it's a big SUV and you're used to driving a small car, you're going to be paying more for gas. Don't let that joy erode the purchase

be thinking about the whole purchase as a whole. I think that's great. All right, the seventh way to buy happiness is to follow the herd instead of your head. So it says, following the herd can be costly when investing, but in other situations, the opinion of the crowd can help.

So, for example, reading the ratings on products or experiences can give us a better idea of how much we're actually going to like them. And from there, we can adjust our expectations and put our money towards the best option. This is great. This is kind of a twist on it, right? Because usually it's like, don't follow the crowd. But yet, the crowd is saying, this hotel's nasty. Don't go stay there.

You're probably like, I'm going to listen to them. Okay, okay. And I know some reviews are like botched and all that stuff. But I love that when it comes to not like really, you know, serious parts of finance, like investing, they mention that. Sometimes people get on a trend and they lose a bunch of money. So it's not about following the crowd all the time, but reading the reviews and understanding in full what you're about to buy could actually be helpful.

So I like that. All right. The eighth way to buy happiness is to skip comparison shopping. Yes and amen. I already like the title of this one. So when we're in the weeds on a certain purchase, we tend to do a lot of comparing while we're shopping in the moments, like when you're buying any. your smartphone and you're comparing two different types of camera pixel options.

It's something to go with the best option while you're in the Apple store. But when you're just trying to make a snap quick picture on Christmas morning, are you really going to be thinking about the small difference in the photo quality? Probably not. And try to think about the big picture because the truth is you need a new phone. So get one within your budget and move on. And I love this. Yes.

Because you see the comparison side by side. It's like, well, this one has all this stuff. And yeah, well, that looks good. Are you really going to use it? Are you really going to use it where you can get a more, a less expensive option, right? And to have as much stuff, but it gives you what you need. So be looking at the options, smart. Okay, so looking back over this list, one thing that I noticed is intentionality,

which I can always get behind. So if you have a purchase coming up, be intentional to prepare for it so that you can fully learn and lean into the joy of the purchase in the moment. Or maybe if you're struggling with comparison, intentionally practice gratitude and generosity and contentment for the things that you already have, so you're not just in that waiting stage for everything coming up, right? You can enjoy your present life.

And I'm really passionate about this topic of contentment. I even wrote a book called The Contentment Journal to practice contentment because it is so key, you guys. This is an important part of winning with money. Because no matter what, remember this. Yes, money can make life a whole lot easier and convenient. Absolutely. But it's the people in your life and the relationships and your passions and the other things

that money can't buy that really fill you up. Making more money. then always solve your problems, you guys. Your habits are so, so important, so important. Well, thank you guys so much for listening to this episode. And again, leave a review. If you love the podcast, share this episode with a friends. Be spreading the word because we want people to learn how to control their money. It is so important. Such an important thing in life. So thanks again, you guys, for listening. And remember, take control of your money and create a life you love.